Home » What the Tribal Compact Decision Means for Florida’s Sports Scene

What the Tribal Compact Decision Means for Florida’s Sports Scene

By  //  July 28, 2023

The opportunity to place a wager on a sporting event can make it more exciting, adding another layer of interest in your favorite team or player’s success. But that is not always possible depending on the state where you live with many prohibiting sports betting.

However, sports fans in Florida could be set for a return to regulated betting for the first time since 2021. This is all down to the Tribal Compact decision on July 3rd; what could it mean for Florida’s sports scene?

What is the Tribal Compact Decision?

In Florida, the Tribal Compact Decision refers to a recent legal ruling that impacts the relationship between the state government and Native American tribes regarding gambling operations. The compact decision involves a renegotiation or renewal of the existing gaming compact between the state and the Seminole Tribe of Florida.

The court’s decision makes the expansion of certain gambling activities in Florida possible. This will include how casinos and coin machines operate. The revised compact means the Seminole Tribe of Florida will have authority over the possibility of adding new games to casinos such as craps or roulette. Importantly, the compact will also grant exclusive rights to sports betting in Florida to the tribe.

The decision will establish a framework for the operation and regulation of casinos and sports betting in Florida, which you can follow the progress of here. The terms and conditions of how the Seminole tribe is allowed to operate gambling is set out alongside revenue-sharing agreements with the state government.

The outcome has the potential to generate substantial revenue, but it is important to remember that the compact decision is still at an early stage. Regulatory frameworks and arrangements are yet to be established.

The previous compact of 2010 only permitted draws, raffles, slot machines, and a selection of card games. The 2021 compact that has just passed allows far greater choice for gamblers.

It means that pro, college, international, and Olympic athletic and sports events can be gambled on by people aged 21 or over. All sports betting in Florida will have to go via the Seminole Tribe as they are the exclusive operator.

This move sees Florida join Maine, Kentucky, and Vermont in legalizing sports betting but not being immediately operational. 

The Value of Sports Betting in the U.S.

The total sports betting revenue in the U.S. reached as high as $7.56bn in 2022, a 54.3% rise from 2021. This figure is sure to rise with more states entering an already popular betting market.

Sports gambling has the potential to be extremely lucrative for Florida and the gambling services that provide it. It also has the potential to provide a significant economic boost. 

Studies show that an increase in jobs, local taxes, and stimulates the local economy.

To determine how valuable sports betting can be to the sports industry, all you have to do is look back at the figures from when sports betting was made legal in the U.S.

In 2018, the Supreme Court allowed states to legalize sports betting and many immediately took up the option, including New Jersey, Pennsylvania, and West Virginia.

The excitement was due to projections that predicted earnings upwards of $4.2bn could be made by the four major sports leagues; NBA, MLB, NFL, and NHL. Direct and indirect revenue streams were shown to be influenced by how easily someone could gamble on a game.

This is due to the gambler then having a vested interest in any match they gamble on. They are far more likely to go to or watch a game they have money on. 

What the Tribal Compact Decision Means for Florida’s Sports Scene

The introduction of sports betting in Florida has the potential to be beneficial to sports teams that could see increases in attendance and higher viewing figures. High attendance and viewing figures will help to attract bigger sponsorship deals that can then be invested back into the team.

Greater interest in Florida sports can only be seen as a good thing. It will help drive ticket and merchandise sales and will also result in greater data insights. Data insights into performance can help gamblers identify potential betting opportunities based on statistical analysis.

Another benefit of greater insights and stats is that teams and athletes can also identify the areas they are strongest and those that need work.

Conclusion

In conclusion, the Tribal Compact decision looks like it could have a positive effect on Florida sports. It will help to increase interest and viewing numbers and also has the potential to improve crowds and revenue.

Time will tell exactly how the legislative framework will be drawn up, and we are interested to see the opportunities that will arise from it. With the potential to profit directly and increase revenue as a result of betting, it will give Florida sports and athletics an opportunity to invest in infrastructure and build something positive for the future.